LONDON (Alliance News) - Communications technology company Spirent Communications PLC on Thursday said its revenue for the third quarter rose but said it expects to book restructuring charges in the fourth quarter as it makes changes in order to offset shifts in the wireless devices and carrier acceptance test market.
Spirent said revenue for the quarter to the end of September rose to USD125.0 million from USD110.1 million a year earlier, up 14%. Networks & Applications revenue was up 13%, partly due to delays in the second quarter pushing revenue into the third, while its Service Assurance business saw revenue more than double, thanks to hand held test tools being shipped. Again, this had happened earlier in 2014 and so the comparatives for the third quarter were more favourable.
Wireless and service experience revenue was down 11% in the quarter amid continuing volatility in demand in its wireless business. The shifts seen in the wireless market are set to hit Spirent's revenue in 2016 and the group is set to book a USD15.0 million restructuring cost in the fourth quarter to make changes it said will deliver USD25.0 million in annual savings, which should feed through in 2016.
Spirent said its revenue for the nine months to the end of September was USD343.7 million, up from USD331.1 million.
Excluding this, underlying results for the full year are expected to be in line with the company's expectations, it said.
Spirent also said Rachel Whiting, its chief financial officer, will step down from her role in May 2016, following the group's annual general meeting. A search for a successor has been started.
Spirent shares were down 5.4% to 70.50 pence on Thursday morning, one of the worst performers in the FTSE All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Spirent (SPT)